Magellan’s Global Trust (MGG) will shake things up when it hits the ASX next month with a range of innovative features not previously seen in the Australian listed investments landscape. It will be based on a high conviction, relatively concentrated global equities and benchmark agnostic mandate with a portfolio of 15 to 35 stocks.
What we like:
- MFG is bearing all the establishment costs, resulting in the units’ first day NAV being equal to paid-in capital.
- The Trust’s priority offer provides a strong investment proposition for those who qualify for the loyalty bonus, but with the loyalty units to be funded by MFG, non-qualifying investors will not be diluted.
IIR initiates coverage with a “Recommended Plus” rating for MGG. IIR holds the Manager in high regard, with a strong and stable team and investment committee, proven processes, and strong performance track-record.